Help for Overcoming Personal Debt

The world economy has recently gone from bad to worse. Nearly everyone is experiencing economic difficulties. It is not uncommon to pick up a newspaper and read about massive bank and corporate failures. Personal bankruptcy court dockets, as you can imagine, are increasingly crowded. But, where do those who want to get out of debt without declaring bankruptcy turn for help?

As overwhelming as it may seems, it is possible to get out of debt without taking bankruptcy or other extreme measures. Credit repair experts will tell you that the road to financial recovery starts with a debt reduction plan. And, of course, being committed to the plan is equally important.

In making your plan to get out of debt you will need to gather all of the facts. How much do you really owe? What interest rates are you paying on credit cards? Your auto loan? Your mortgage? Write this information down and do not overlook anything.

Secondly, make a list all of your daily living expenditures as well as the financial obligations you incur each month. For example, list the monthly payments you make on credit cards, rents or mortgage, utilities and insurance – absolutely all your expenditure should be included. Your plan to get out of debt requires a thorough and exact understanding of your current financial obligations.

After you have determined your current debt level it is time to get professional help. Make an appointment with a credit-counseling agency that is on the approved list (has the met the requirements of the US Bankruptcy Code). There are two reasons for this: accountability and guidance. When you meet with the agency take with you the list of debts and expenses you have prepared. After assessing your situation, they will make recommendations and, in some cases, work with your creditors to help you resolve your debt.

There is help for overwhelming debt if you make a plan and commit to it. Whatever you do, do not let feelings of helplessness overpower you. Instead, simply take the necessary steps to get out of debt and achieve financial freedom. It can be done.

Eileen King is a home-based freelance writer whose areas of interest include personal finance, online college education, and professionally and career-focused online degree programs for working adults.